1st Quarter 2011 Merchant Cash Advance Industry Preview

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Posted on April 3, 2011 at 7:52 PM

As a continuation of the massive popularity of our 2010 full year Merchant Cash Advance funding statistics, we are putting together data for the 1st quarter of 2011. It has not yet been finished but we figured we’d share some of our early findings.

Funding appears to be on the rise in almost every state

This is mainly due to increased output by AdvanceMe. They are literally pushing the industry’s figures forward and making up for some firms that have cooled off. First Funds’ (Principis Capital) figures have declined by a large degree and is not operating close to 2010 levels.

Surge in “Starter Advances”

1st Merchant Funding, the most well known provider of starter advances is making significant gains. This may be an indication of tighter underwriting for normal size advances, there being more applicants with terrible credit, or the result of business owners embracing the opportunity to start off small.


Funding volume in this state has fallen off a cliff. Our initial estimates show declines of somewhere between 20-50%. This most likely has to do with What’s Going on in California. Normally the most active State for Merchant Cash Advance (was 13% of the entire nation in 2010), a continuation or worsening of this trend will actually shrink the industry as a whole in 2011.  Of course the evidence of growth in the remaining 49 states tells the real story of the financial product’s success.

Stay tuned for the statistics…

– The Merchant Cash Advance Resource


Last modified: February 21, 2013
Sean Murray

Category: merchant cash advance, MPR Authored

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